Ukraine, Argentina, Turkey and Brazil are the nations most vulnerable to a credit event from the continuing appreciation in the US dollar, according to ratings agency Fitch.
Ukraine is in the most peril, Fitch says, with its sovereign, bank, and corporate debt all carrying “high” vulnerability to the current phase of monetary policy tightening by the US Federal Reserve.
Higher interest rates on US dollar-denominated debt can cause huge problems for borrowers when the greenback appreciates broadly, as is currently happening, with both principal and interest repayments surging relative to...Read more ...